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HUDCO Shares Extend Rally on Fundraising, Sensex Rises To New High

Shares of Housing and Urban Development Corporation (HUDCO), which made news earlier May for its stellar IPO subscription followed by a bumper listing on the stock exchanges, rose again today, extending their two-day rally on persisting news reports of further fundraising plans by the company and a large investor buying stake in it.

HUDCO shares were trading up 5.3% at Rs95 on BSE, after rising to a high of Rs96.75. Meanwhile, BSE Sensex was up 0.73% and rose above 32,000 points for the first time ever.

Earlier this week, state-run lender HUDCO said that the company’s board will consider issuing debentures up to Rs100 crore plus greenshoe option on Friday, July 14. Its shares are on fire since then, rising as much as over 36% in just three sessions, including today.

After the news of the scheduled board meeting for considering the fundraising proposal, another unconfirmed news hit the market that a large investor has purchased HUDCO shares, as was reported by The Economic Times.

In May, HUDCO shares made a strong debut on stock exchanges, listing at a premium of over 22% to its issue price of Rs60, following a massive 79 times subscription of its initial public offer.

As of 30 September 2016, HUDCO’s total assets under management (AUMs) were at about Rs36,110 crore, which included housing finance assets of Rs11,290 crore and urban infrastructure finances of Rs24,820 crore.